TME
09/10/2012 09:41
GENERAL
REL: 0941 HRS Trade Me Group Limited
GENERAL: TME: Christchurch rentals market remains tough
Christchurch rentals market remains tough
The Christchurch rental market is still tight while the rest of the country
shows signs of easing, according to Trade Me Property's latest quarterly
figures.
In Christchurch the number of enquiries from potential tenants remains
strong, up 38 per cent compared to the same period last year.
Brendon Skipper, head of Trade Me Property, said the data indicated a drop in
supply, leading to increased demand and price. "We're seeing a 25 per cent
increase in rental asking prices, with the numbers painting the classic
picture of over demand and under supply for residential properties throughout
the city".
Mr Skipper said observations of the top five suburbs indicate these market
trends could be set to continue. Linwood, St Albans, CBD, Merivale and
Riccarton all have low supply, high demand and the inevitable increase in
asking price.
"The numbers clearly show that the current supply and demand situation is not
going away any time soon while the city redevelops," Mr Skipper said. While
there are properties available to rent in these areas, the resilient demand
puts landlords in a strong position to ask top dollar.
The national picture
The rest of the country showed further easing of demand, down 4 per cent from
the previous year while rental asking price was up a modest 3 per cent, with
national supply up 8 per cent.
Supply in Auckland was up 28 per cent on the previous year, though demand was
down (-20%) as a result of increased activity during the 2011 Rugby World
Cup. Wellington kept pace with a similar increase in rental listings (+23%),
affecting the city's average asking price (-3%). Mr Skipper anticipated an
ease in rental prices as demand fell and investors gained access to cheaper
credit, noting that "the next rate move could more likely be down than up".
Mr Skipper said there was plenty of talk about a strong property for sale
market, especially in central Auckland. "Compared to the same time last year,
we've seen a 16 per cent increase in demand from buyers nationwide, though
they might find it tough going considering the currently flat supply. Of
course, if you're thinking of selling then now could be a good time to put
your property under the hammer".
A shift from renting to buying could have implications for the rentals market
especially in the major cities, said Mr Skipper. "With the stimulation in the
for sale market, it seems tenants are holding off moving rentals and
considering taking the plunge into ownership".
-ends-
Contact: Jeff Hunkin, Communications & Community, ph 04 803 2601
End CA:00228246 For:TME Type:GENERAL Time:2012-10-09 09:41:30
